Digital transformation in small and medium-sized enterprises in Vietnam: Current status, barriers, and solutions

Abstract: Digital transformation has become essential to the survival, competitiveness, and sustainable development of small and medium-sized enterprises in Vietnam. This study comprehensively analyzes the current implementation of digital transformation among Vietnamese SMEs, clarifies its strategic benefits, and identifies the favorable conditions and major barriers affecting adoption. Key challenges include limited financial resources, inadequate digital skills, weak management capabilities, technological constraints, cybersecurity concerns, and resistance to organizational change. Based on the current situation and orientations for digital economy development in Hanoi and nationwide, the study proposes coordinated solutions involving state policies, enterprise-level strategies, technology ecosystems, and industry associations. These measures aim to improve digital capabilities, reduce implementation barriers, strengthen technology access, promote digital culture, and accelerate an effective, comprehensive, and sustainable digital transformation process among Vietnamese SMEs.